DENTON, TX, February 8, 2024 – Denton Municipal Electric (DME) has announced a proposed mid-year rate adjustment during the recent Public Utilities Board meeting held on February 12 and the upcoming Denton City Council meeting scheduled for February 20. The proposed adjustments aim to address the increased costs of energy and transmission that have been charged to DME, with the changes expected to affect all DME customers starting with their April billing statement.
The need for this rate adjustment arises from a combination of factors, notably the higher-than-anticipated energy costs during the summer of 2023. DME is looking to finance $31.26 million over five years to sustain financial stability, a situation mirrored by electric providers across the State due to similar cost pressures.
Further driving the proposed increase are the rising costs of power supplied to DME customers, which have not seen a rate increase in almost seven years. The proposed rate adjustment suggests an average monthly increase of $10.60 for residential customers. Additionally, the costs paid to other transmission system owners for improvements made to the ERCOT grid have also been climbing, prompting an additional proposed monthly increase of $8.80 for average residential customers.
If approved, the rate adjustments would increase the average electric bill from $106 to $116 when averaged annually. These changes are subject to the discussions and final decision by the Public Utilities Board and City Council in their forthcoming meeting.
Despite the proposed rate increases, DME maintains its position as one of the lowest-cost providers of reliable, safe, and 100% renewable energy compared to other renewable plans in the state. The utility emphasizes that, even with the adjustments, monthly bills for its customers would remain below the average for Municipally Owned Utilities in Texas. The proposed adjustments are aimed at ensuring the continued financial health of DME while addressing the increased costs of energy procurement and transmission investments.